Risks
The contracts behind PenguMiner are accompanied by a formal solvency proof, which holds under the assumptions stated in that proof — in particular that the underlying DEX code behaves as specified. Everything outside those assumptions is a real risk, and this page lists what we are aware of.
PGM can lose value. Do not treat the mechanics described in this whitepaper as a guarantee against loss.
Risks Outside of What We Prove
A non-exhaustive list of real risks:
- Smart contract risk. The contracts may contain undiscovered bugs, despite audit and testing. An audit is not a guarantee of correctness.
- USDT risk. The backing is denominated in USDT. Tether can freeze addresses — including the contract's — and USDT can depeg. This would directly affect the backing.
- Chain risk. Abstract Chain (zkSync Era L2) could halt, malfunction, or be discontinued.
- DEX risk. The liquidity pools rely on third-party DEX contracts.
- Regulatory risk. Legal treatment of tokens differs by jurisdiction and can change, including retroactively.
- Economic risk: PGM price appreciation cannot be guaranteed; it depends on user adoption. The project may fail.
- Economic risk: Using USDT as counter-liquidity rather than ETH, wBTC, or PENGU carries fiat-inflation and opportunity-cost exposure.
- Key risk. Loss of your own wallet keys means loss of access. Nobody can restore it for you.
Contract Properties
The contracts have no admin key and no team, VC, advisor, or marketing allocation. The deployed source is verified and publicly readable on Abscan, so anyone can inspect it directly.
Detailed documentation of the contract mechanics is not part of the public whitepaper while the token distribution is running. It is available to project participants and will be published in full after launch on October 10, 2026.
None of this removes the risks listed above.